Analysts Are Downgrading These 5 Stocks

04. Bath & Body Works, Inc. (NYSE:BBWI)

Number of Hedge Fund Holders: 46

Bath & Body Works, Inc. (NYSE:BBWI) revealed its fiscal fourth-quarter 2022 financial results on February 23, 2023, which came in higher than the Wall Street consensus with earnings per share of $1.86 compared to the expected $1.63. Despite exceeding expectations in earnings, Bath & Body Works, Inc. (NYSE:BBWI) experienced a 5% decline in revenue during the fourth quarter, generating $2.889 billion compared to $3.027 billion in the previous year. To improve its operating efficiency, Bath & Body Works, Inc. (NYSE:BBWI) announced an enterprise-wide plan to decrease expenses and cut costs. The company aims to achieve $200 million in annual cost savings, with over 50% of those savings expected to impact the second half of 2023. This initiative is a promising step towards improving the company’s financial health and growth prospects.

In a research note to investors issued on April 20, Piper Sandler analyst Korinne Wolfmeyer downgraded Bath & Body Works, Inc. (NYSE:BBWI) from Overweight to Neutral, with a new price target of $37, down from $48. The company’s results are likely to align with management’s guidance from the fiscal Q4 earnings call due to ongoing margin pressures, according to the analyst. Despite the stock’s relatively low valuation, current estimates are deemed to be overly optimistic, leaving little potential for share price growth from current levels, says the firm.